Ademi LLP is investigating Archaea (NYSE: LFG) for possible breaches of fiduciary duty and other violations of law in its transaction with bp.
Ademi LLP alleges Archaea’s financial outlook and prospects are excellent and yet Archaea holders will receive only $26 per Archaea Class A and Class B share in cash, or a total enterprise value of approximately $4.1 billion, including approximately $800 million of net debt. The transaction agreement unreasonably limits competing bids for Archaea by imposing a significant penalty if Archaea accepts a superior bid. Archaea insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Archaea’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Archaea.